Pride Group Announces Corporate Restructuring

On March 27, 2024, Pride Group Holdings Inc., along with other associated companies, initiated a significant step towards restructuring by obtaining protection under the Companies' Creditors Arrangement Act (CCAA) through an Initial Order from the Ontario Superior Court of Justice. This move, meant to stabilize business operations and address financial challenges, also extends a stay of proceedings to affiliated entities, ensuring operational continuity for a stipulated 10 days, with potential extensions.

In addition to the CCAA protection in Canada, certain Pride Group companies will file for recognition under Chapter 15 in the United States, aiming for comprehensive jurisdictional coverage. This dual legal strategy underscores the group’s commitment to maintaining service delivery and stabilizing its financial and operational frameworks. Pride Group's optimism about emerging stronger from this restructuring is evident, with a focus on long-term sustainability and stakeholder benefits.

Operational stability is promised throughout the restructuring process, ensuring uninterrupted service delivery. Professional support for this corporate maneuver comes from Ernst & Young Inc., serving as Monitor, alongside legal assistance from Thornton Grout Finnigan LLP in Canada and Linklaters LLP in the United States, signifying a robust approach towards navigating the restructuring landscape.